According to JPMorgan analysts, the upcoming Bitcoin halving, scheduled for April, could cause a drop in the price of the cryptocurrency.
This event will reduce miners' rewards from 6.25 BTC per block to 3.125 BTC, leading to a decrease in profitability and a higher cost of Bitcoin production.
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It is worth noting that the cost of mining is a significant factor in the price of Bitcoin, with analysts predicting it will be around $42,000 after the halving.
These have also mentioned the possibility of a 20% decrease in network hashrate due to less efficient equipment being switched off.
This would reduce the estimated production cost range to $42,000 based on an average electricity cost of $0.05/kWh.